Indian banks are increasingly adopting AI, but systematic implementation lags. While many see AI’s potential for better customer service and risk management, only 8% of banks have a systematic AI strategy. Banks must adapt their business models to compete and meet changing customer needs for personalized, high-value services.
Ujjivan Small Finance Bank has applied for a universal banking license from the Reserve Bank of India. This strategic move aims to expand its services and cater to a wider customer base, enhancing financial inclusion and strengthening its position in the Indian market. The application follows similar moves by other small finance banks.
Bernstein’s analysis reveals a positive outlook for Indian banking, with ICICI and HDFC Banks seen as safe bets. MFIs are showing signs of recovery, while IndusInd Bank is highlighted as a potential 12-month investment. Challenges remain, but the overall sentiment is cautiously optimistic.
